House File 6 - Introduced HOUSE FILE 6 BY NORDMAN , HOLT , WHEELER , STONE , A. MEYER , COLLINS , MOORE , JENEARY , VONDRAN , DUNWELL , MEGGERS , FISHER , WULF , SHIPLEY , BRADLEY , RINKER , DEYOE , WILLS , GUSTAFSON , MOMMSEN , P. THOMPSON , JOHNSON , SORENSEN , GEHLBACH , KAUFMANN , FRY , YOUNG , HENDERSON , WOOD , GUSTOFF , WINDSCHITL , GRASSLEY , BOSSMAN , and GERHOLD A BILL FOR An Act relating to workforce development, including 1 establishing the Iowa workforce grant and incentive program 2 and modifying the responsibilities of the Iowa workforce 3 development board. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1682YH (3) 90 jda/jh

H.F. 6 Section 1. Section 84A.1B, subsection 14, unnumbered 1 paragraph 1, Code 2023, is amended to read as follows: 2 Create, and update as necessary at least once every five 3 years , a list of high-demand jobs statewide for purposes of 4 the future ready Iowa registered apprenticeship programs 5 created in chapter 15C , the summer youth intern pilot program 6 established under section 84A.12 , the Iowa employer innovation 7 program established under section 84A.13 , the future ready Iowa 8 skilled workforce last-dollar scholarship program established 9 under section 261.131 , the future ready Iowa skilled workforce 10 grant program established under section 261.132 , the Iowa 11 workforce grant and incentive program established under section 12 261.133, and postsecondary summer classes for high school 13 students as provided under section 261E.8, subsection 8 . In 14 addition to the list created by the workforce development 15 board under this subsection , each community college, in 16 consultation with regional career and technical education 17 planning partnerships, and with the approval of the board of 18 directors of the community college, may identify and maintain 19 a list of not more than five regional high-demand jobs in the 20 community college region, and shall share the lists with the 21 workforce development board. The lists submitted by community 22 colleges under the subsection may be used in that community 23 college region for purposes of programs identified under this 24 subsection . The workforce development board shall have full 25 discretion to select and prioritize statewide high-demand jobs 26 after consulting with business and education stakeholders, 27 as appropriate, and seeking public comment. The workforce 28 development board may add to the list of high-demand jobs as it 29 deems necessary. For purposes of this subsection , “high-demand 30 job” means a job in the state that the board, or a community 31 college in accordance with this subsection , has identified in 32 accordance with this subsection . In creating a list under this 33 subsection , the following criteria, at a minimum, shall apply: 34 Sec. 2. NEW SECTION . 261.133 Iowa workforce grant and 35 -1- LSB 1682YH (3) 90 jda/jh 1/ 7

H.F. 6 incentive program. 1 1. Definitions. As used in this section, unless the context 2 otherwise requires: 3 a. “Commission” means the college student aid commission. 4 b. “Eligible institution” means an institution of higher 5 learning governed by the state board of regents. 6 c. “Eligible program” means any of the following: 7 (1) A program of study or an academic major jointly approved 8 by the commission and the department of workforce development, 9 in consultation with the eligible institution, that is 10 aligned with a high-demand job designated by the workforce 11 development board pursuant to section 84A.1B, subsection 14. 12 If the workforce development board removes a high-demand 13 job from the list created under section 84A.1B, subsection 14 14, an eligible student who received a grant for a program 15 based on that high-demand job shall continue to receive the 16 grant until the eligible program is completed as long as the 17 student continuously enrolls and continues to meet all other 18 eligibility requirements. 19 (2) A teacher preparation program that leads to a bachelor’s 20 degree, or initial or intern teaching license issued under 21 chapter 272. 22 d. “Eligible student” means an Iowa resident who has 23 established financial need and who meets all of the following 24 requirements: 25 (1) Completes and submits application forms required by the 26 commission, including the free application for federal student 27 aid, by the deadline prescribed by the commission. 28 (2) Enrolls in at least three semester hours, or the 29 equivalent, in an eligible program. 30 (3) Is making satisfactory academic progress as defined by 31 the eligible institution. 32 e. “Financial need” means the difference between the 33 student’s financial resources available, including those 34 available from the student’s parents as determined by a 35 -2- LSB 1682YH (3) 90 jda/jh 2/ 7

H.F. 6 completed parents’ confidential statement, and the student’s 1 anticipated expenses while attending an eligible institution. 2 f. “Full-time” means enrollment in at least twelve semester 3 hours or the equivalent. 4 g. “Part-time” means enrollment in at least three semester 5 hours or the equivalent but less than twelve semester hours or 6 the equivalent. 7 2. Student eligibility. An eligible institution shall 8 report promptly to the commission information requested to 9 establish or verify student eligibility. 10 3. Grant limitations —— requirements. 11 a. A full-time eligible student may receive an Iowa 12 workforce grant annually for not more than three semesters, or 13 the equivalent, or until the eligible student completes the 14 eligible program, whichever occurs first. A part-time eligible 15 student may receive the grant for not more than six semesters, 16 or the equivalent, on a prorated basis, or until the eligible 17 student completes the eligible program, whichever occurs first. 18 b. The amount of an Iowa workforce grant to a full-time 19 eligible student shall not exceed two thousand five hundred 20 dollars per semester, or the equivalent. The amount of an Iowa 21 workforce grant to a part-time eligible student shall be equal 22 to the amount that would be awarded to a full-time student 23 except that the commission shall prorate the amount based on 24 the recipient student’s semester hour or equivalent enrollment. 25 c. An Iowa workforce grant shall be awarded on an annual 26 basis, requiring reapplication by an eligible student each 27 year. Payments under the grant shall be allocated equally 28 among the semesters, or the equivalent, and paid upon 29 certification by the eligible institution that the student 30 meets the requirements of subsection 1, paragraph “d” . 31 d. If a grant recipient discontinues attendance before the 32 end of any semester, or the equivalent, after receiving grant 33 payments, the entire amount of any refund due that recipient, 34 up to the full amount of grant payments made during that 35 -3- LSB 1682YH (3) 90 jda/jh 3/ 7

H.F. 6 semester, or the equivalent, shall be paid by the eligible 1 institution to the commission. 2 4. Annual submission of applications. To receive a renewal 3 of a grant awarded under this section, an eligible student 4 must annually submit a new application to the commission for 5 reevaluation of eligibility. 6 5. Priority for grant awards. In making awards under this 7 section, the commission shall give priority to: 8 a. Applicants who received an award under this section in 9 the prior academic year. 10 b. Applicants with the least financial ability to pay, 11 using a metric that ranks relative financial ability among all 12 applicants. 13 6. Iowa workforce incentive payment. Notwithstanding the 14 grant limitations in subsection 3, an individual who was an 15 eligible student who received an Iowa workforce grant in the 16 academic year in which the eligible program is completed, and 17 who accepts and begins employment in an aligned occupation 18 in this state within six months of completing the eligible 19 program, may apply for one incentive payment of up to two 20 thousand five hundred dollars. The incentive payment shall be 21 paid upon completion of twelve consecutive months of full-time 22 employment in the aligned occupation in this state, following 23 completion of the eligible program. 24 7. Commission’s duties and responsibilities. Subject to an 25 appropriation of moneys by the general assembly for purposes 26 of this section, the commission shall administer the Iowa 27 workforce grant and incentive program and shall do all of the 28 following: 29 a. Provide application forms for distribution to students by 30 eligible institutions. 31 b. Adopt rules under chapter 17A for administration of this 32 section, including establishing the duties and responsibilities 33 of eligible institutions under the program, defining residence 34 and satisfactory academic progress for purposes of the program, 35 -4- LSB 1682YH (3) 90 jda/jh 4/ 7

H.F. 6 determining financial need, and establishing procedures for 1 grant and incentive payment application, processing, and 2 approval. The rules shall provide for determining the priority 3 awarding of grants and incentives if moneys available for 4 purposes of this section are insufficient to pay all eligible 5 applicants. 6 c. Approve and award grants and incentive payments on an 7 annual basis. 8 8. Fund created. An Iowa workforce grant and incentive 9 program fund is created in the state treasury under the control 10 of the commission. All moneys deposited or paid into the 11 fund are appropriated to the commission to be used for grants 12 and incentive payments awarded as provided in this section. 13 Notwithstanding section 8.33, moneys in the fund that remain 14 unencumbered or unobligated at the close of a fiscal year shall 15 not revert but shall remain available for expenditure for the 16 purposes designated. Notwithstanding section 12C.7, subsection 17 2, interest or earnings on moneys in the fund shall be credited 18 to the fund. 19 EXPLANATION 20 The inclusion of this explanation does not constitute agreement with 21 the explanation’s substance by the members of the general assembly. 22 This bill relates to workforce development, including 23 establishing the Iowa workforce grant and incentive program 24 and modifying the responsibilities of the Iowa workforce 25 development board. 26 The bill establishes the Iowa workforce grant and incentive 27 program (WGIP) within the college student aid commission 28 (commission), subject to an appropriation of moneys by the 29 general assembly. The bill provides that a full-time eligible 30 student may receive an annual grant under the WGIP for not more 31 than three semesters or until the eligible student completes 32 the eligible program, whichever occurs first. The bill also 33 provides that a part-time eligible student may receive an 34 annual grant under the WGIP for not more than six semesters, 35 -5- LSB 1682YH (3) 90 jda/jh 5/ 7

H.F. 6 on a prorated basis, or until the eligible student completes 1 the eligible program, whichever occurs first. The bill 2 establishes that the maximum amount of a grant under the WGIP 3 to a full-time eligible student shall not exceed $2,500 per 4 semester, and the maximum amount of a grant under the WGIP to 5 a part-time eligible student shall be prorated based on the 6 part-time eligible student’s semester hour enrollment. The 7 bill requires eligible students to submit new applications 8 under the WGIP to the commission annually for reevaluation 9 of eligibility. The bill provides that if a grant recipient 10 discontinues attendance before the end of any semester, the 11 eligible institution is required to pay to the commission the 12 entire amount of any refund due to that recipient, up to the 13 full amount of the grant payments made during the semester. 14 When making awards under the WGIP, the bill requires the 15 commission to give priority to applicants who received an 16 award in the prior academic year and applicants with the least 17 financial ability to pay. 18 The bill provides that an individual who was an eligible 19 student who received a grant under the WGIP in the academic 20 year in which the eligible program is completed, and who 21 accepts and begins employment in an aligned occupation in this 22 state within six months of completing the eligible program, 23 may apply to the commission for one incentive payment of up to 24 $2,500. The bill establishes that the commission shall pay the 25 incentive payment upon the successful applicant’s completion of 26 12 consecutive months of employment in this state. 27 The bill establishes an Iowa workforce grant and incentive 28 program fund in the state treasury under the control of the 29 commission. The bill provides that all moneys deposited or 30 paid into the fund are appropriated to the commission to be 31 used for awarding grants and incentive payments under the WGIP. 32 The bill defines “commission”, “eligible institution”, 33 “eligible program”, “eligible student”, “financial need”, 34 “full-time”, and “part-time”. 35 -6- LSB 1682YH (3) 90 jda/jh 6/ 7